Yes Bank Ltd. is exiting the mutual fund business by selling its asset management and trusteeship subsidiaries to an entity controlled by former Goldman Sachs Inc. fund manager, Prashant Khemka.
Yes Bank has executed an agreement to sell 100% of Yes Asset Management Ltd. and Yes Trustee Ltd. to GPL Finance and Investments Ltd.
About White Oak Investment
White Oak Investment Management owns 99 per cent of the GPL Finance, which in turn is 99.99 per cent owned by Prashant Khemka.
About GPL Finance
GPL Finance, a non-banking entity, is an investment vehicle used for 100% acquisition of Yes AMC and Yes Trustee.
About Yes AMC
YES AMC is the asset management company of YES Mutual Fund and YES Trustee is the trustee of YES Mutual Fund.
Yes AMC contribution
Yes AMC contributed Rs 33 lakh to Yes Bank’s revenue in fiscal 2019-20.The net worth contribution of the mutual fund arm was Rs 49.7 crore in the previous fiscal.
Transaction Clearance
The transaction, subject to requisite regulatory approvals, is expected to be completed in 8-12 months from execution of the definitive agreement.
Stock Market reaction
On Friday, Yes Bank shares fell 1.21% to Rs 15.57 apiece on BSE while the benchmark Sensex gained 0.56% to end the day at 38,434.72 points.
